Apparel Industry

The CMAI said that the proposed GST rate revisions pose a significant threat to the apparel industry, which is facing challenges like drop in consumer demand, profit erosion and working capital issues

Apparel retailers, and exporters in general, have increased their use of air freight since insecurity in the Red Sea disrupted global shipping routes

Revenue, profit to grow 11%, 15% CAGR between FY24 and FY27, says the brokerage

With one-third of India's apparel exports heading to the US, the country has solidified its position as the fourth-largest supplier to the American market

Indian apparel exporters are expected to register a 9-11 per cent revenue expansion in FY25 aided primarily by gradual liquidation of retail inventory in key end markets and a shift in global sourcing to India, ratings agency ICRA on Monday. The long-term prospects for Indian apparel exports are favourable, aided by enhanced product acceptance in end markets, evolving consumer trends and a boost from the government in the form of the production-linked incentive (PLI) scheme, export incentives, the proposed free trade agreement with the UK and the EU, among others, ICRA said in a statement. The expected growth this fiscal follows a tepid performance in FY24 when exports were affected because of high retail inventory, sluggish demand from the key end markets, supply chain issues, including the Red Sea crisis and heightened competition from neighbouring countries, it added. With the revival in demand, ICRA said it expects the capex spending to increase in FY2025 and FY2026 and may stay

Festive and wedding season and increasing preference for fast fashion is expected to help the organised retail apparel sector log 8-10 per cent revenue growth this financial year, a report said on Tuesday. The organised retail apparel sector will clock a revenue growth of 8-10 per cent this fiscal riding on higher demand stemming from a normal monsoon, easing inflation, festive and wedding season and increasing preference for fast fashion, which is inexpensive, trendy clothing that mimics high fashion designs and popular styles, Crisil Ratings said in a report. "The mass market segment accounts for 60 per cent of total sales now, compared with 56 per cent before the pandemic, due to the rising popularity of fast fashion, which is expected to be the primary revenue driver this fiscal. The likely increase in demand for premium clothing during the upcoming festive and wedding seasons will also contribute to overall revenue growth of 8-10 per cent this fiscal," Crisil Ratings Senior ...

Bangladesh, alongside China, is the largest production market for clothing for the group

Issues like complex procedures of DGFT and customs, import restrictions and domestic vested interests are holding up the export growth of the Indian garment sector, think tank GTRI said on Sunday. At the root of the exporters' problem is difficulty in obtaining quality raw fabric, particularly synthetic fabric, the Global Trade Research Initiative said. "Unlike in Bangladesh and Vietnam, where exporters easily access quality imported fabrics, Indian exporters struggle daily. High import duties on fabrics, coupled with DGFT (Directorate General of Foreign Trade) and Customs; intricate procedures, force exporters to meticulously account for every inch and type of fabric imported," GTRI founder Ajay Srivastava said. He added that the imposition of mandatory quality norms on raw materials like polyester and viscose staple fibres is complicating imports as the BIS (Bureau of Indian Standards) slowly registers foreign suppliers, and this delay compels exporters to buy from domestic ...

Tata Group's fashion chain appeals to young Indians looking to refresh their wardrobe regularly, says annual report of parent company Trent

Fashion retailer Express Inc has filed for Chapter 11 bankruptcy in the United States and intends to close more than 100 stores, it said on Monday

Jewellery firms may witness strong growth

Sean Stress: Retail majors stitch through low single-digit growth or same-store sales decline

Apparel exporters body AEPC on Wednesday said the industry is working on sustainability production practices as it would help enhance the competitiveness of the sector in the international market. Apparel Export Promotion Council (AEPC) Chairman Sudhir Sekhri said the mantra given by prime minister Narendra Modi to boost textiles exports through 5F - Farm to Fiber, Fiber to Factory, Factory to Fashion, Fashion to Foreign - will energise the textiles export sector. Addressing a gathering after inaugurating Bharat Tex 2024, one of the largest-ever global textile events organised in the country, on Monday, the prime minister promised all support to the textiles sector, stressing that it will play a crucial role in making India a developed nation by 2047, when India will complete hundred years of independence. Sekhri said the expo will help promote the brand India in the international markets. "For such a long time we did not have an international show of such a global standard and ..

Readymade garment manufacturer and exporter Gokaldas Exports (GEL) on Friday said it has signed a definitive agreement to acquire the apparel business of Matrix Clothing for an enterprise value of Rs 489 crore. Through this deal, GEL will get access to the knit apparel business segments, a mutually exclusive global customer base, greater access to European and the UK markets, geographical diversification and low-cost capacity expansion potential in the future, according to a statement. GEL inked a pact with Matrix Clothing Pvt Ltd (MCPL) to acquire 100 per cent of the equity share capital of Matrix Design & Industries for an enterprise value of Rs 489 crore, out of which Rs 247.5 crore is being paid by way of preferential allotment of shares of Gokaldas Exports through a share swap, the company said in the statement. Matrix Clothing Group is a manufacturer of high-quality knitwear apparel for renowned brands with major geographical exposure to Europe, the UK, and North ...

We hope this Budget will act as a catalyst to impact Indian craftsmanship and design by holding expositions, as was done at 60 locations during G20

It had logged a net profit of Rs 96.60 crore in October-December FY23, according to a regulatory filing by the company

The government on Thursday approved the continuation of an export incentive scheme - RoSCTL - for apparel, garments and made-ups up to March 31, 2026. The Rebate of State and Central Taxes and Levies (RoSCTL) scheme is aimed at compensating for the state and central taxes and levies in addition to the rebate provided under duty drawback scheme on export of apparel/garments and made-ups. "The Union Cabinet chaired by Prime Minister Narendra Modi approved the continuation of scheme for RoSCTL for export of apparel/garments and made-ups up to March 31, 2026," an official statement said. It said that the move will provide a stable policy regime which is essential for long-term trade planning, more so in the textiles sector where orders can be placed in advance for long-term delivery. "The continuation of RoSCTL will ensure predictability and stability in policy regime, help remove the burden of taxes and levies and provide level-playing field on the principle that goods are exported a

Apparel exporters body AEPC on Wednesday sought tax incentives such as uniformity in GST and enhanced interest subsidies to boost domestic manufacturing and India's outbound shipments. The Apparel Export Promotion Council (AEPC) asked to provide tax concessions to apparel manufacturers adopting Environmental, Social, and Corporate Governance (ESG) and other international quality standards and compliances. The council also sought budgetary support for the branding and marketing of made-in-India products. The Budget is scheduled to be presented on February 1. The council said that interest equalisation rates were revised downward from 3 to 2 per cent for non-MSME (Micro, Small and Medium Enterprises) manufacturer exporters under the interest equalisation scheme on pre-and post-shipment export credit. "High cost of capital has been a major bottleneck for the exporting community. AEPC has requested the government to increase the rates under the scheme to 5 per cent for all the apparel .

Reliance Retail has launched over 50 exclusive brands and plans to increase the number by 2-3 times, under its strategy to expand the fashion business beyond its own stores

The proposed free trade agreement with the UK and the European Union will be a game changer for the domestic industry and will offer a huge advantage for apparel exporters, AEPC said on Saturday. Apparel Export Promotion Council (AEPC) Chairman Naren Goenka said that trade pacts with the UAE, Australia and Japan are providing market access for the sector. "The FTA with the UK will be a game changer for the industry, and the EU will offer a big advantage if we sign an FTA deal," he said. The negotiations for the trade agreement with the UK are in the last stage and talks with the EU are moving at a faster pace. He also said that one of the major issues regarding the poor export competitiveness of Indian apparel is poor economies of scale. The apparel industry comprises 80 per cent of exporters with around Rs 10 crore turnover and the average number of machines in Indian apparel manufacturing units is 250-400, whereas competing countries have an average of 800- 1000 machines. "Also